Some european nations have experienced a debt crisis. what caused this crisis?

a.
unscrupulous national leaders embezzled money from the treasuries of some european countries.

b.
too many recent immigrants in some nations have drained these countries’ resources.

c.
the interest rate on bonds dropped so low during times of economic austerity that some nations could not earn enough interest on money they lent to investors.

d.
during times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

The correct answer is D) During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

Some European nations have experienced a debt crisis. The cause of the crisis was that during times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

Some European governments thought that borrowing money was the best solution to the problems they have at the moment. But the problem was not to borrow but to pay the debt and interests. That was the case of European countries such as Greece or Spain, which caused severe problems in their countries and instability in European markets to the degree that the European Union. led by Germany, had to take action.